Chaos in Commodities as Russia’s War on Ukraine Upends Trade
- Black Sea trade stalls even with exemptions from sanctions
- International investors start to ditch Russian assets
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The turmoil unleashed in commodity markets by Russia’s invasion of Ukraine worsened on Monday as LNG orders were paused, finance for trade in raw materials dried up and Black Sea wheat sales froze.
As tougher U.S. and European sanctions threaten to partly cut Russia off from the global financial system, disruptions to shipments of raw materials from palladium to wheat mounted. Buyers also paused purchases of Russian liquefied natural gas as they awaited clarity on restrictions against banks and companies. The cost of shipping the nation’s raw materials is soaring, while the fallout is reverberating from London to Hong Kong as international investors ditch Russian commodities assets.